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IAMI, FLORIDA - APRIL 7: Michael Saylor, Chairman & CEO, MicroStrategy, gestures as he speaks during the Bitcoin 2022 Conference at Miami Beach Convention Center on April 7, 2022 in Miami, Florida.
For Generation Z, owning real estate is no longer the primary path to generational wealth. Instead, bitcoin has emerged as a new touchstone that will separate the "haves and have-nots" in their retirement years. Here are three ways bitcoin functions like digital real estate:
1. Universal Desirability
Bitcoin's global appeal and scarcity make it an attractive asset for long-term value storage. Like real estate, its demand is driven by fundamental needs – in this case, safe value storage. As a result, both assets will always be in style with almost anyone worldwide.
"A Bitcoin is like owning a city block in cyberspace," said Michael Saylor. "If you own the right property and a billion people are coming to that city, why wouldn't you keep it in the family for a hundred years?"
2. Reliable Scarcity
Unlike currencies or stocks, real estate's scarcity is difficult to replicate. While more buildings can be constructed, it's challenging to build homes and businesses in high-demand areas like New York City or Tokyo. Bitcoin's hard-coded supply cap of 21 million units ensures its scarcity, driving price appreciation over time.
3. Yield Generation
Bitcoin's critics argue that it lacks intrinsic value due to its non-productive nature. However, the launch of bitcoin spot exchange-traded funds and options for BlackRock's ETF have given bitcoin access to financial tools, allowing owners to earn interest by selling call options or staking their BTC on other blockchain networks.
Compared to real estate, bitcoin offers greater accessibility and superior returns over the past decade. A survey showed that 20% of Gen Z respondents in the US own crypto, while only 5% of baby boomers do. As digital currency becomes a mainstream financial instrument, the formula for financial success is being rewritten – for youth today, it might just be to HODL their bitcoin.
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